Most 1031 exchanges involve real estate for other real estate. But section 1031 covers more than just real estate. Items of personal property can also be exchanged in a 1031. For example, if you own a business and you want to upgrade your office equipment (phones, computers, fax machines, etc.), you can 1031 into newer equipment and defer the taxes on the sale of this equipment.
Our 1031 exchange professionals have been helping individuals in the Rochester area with their personal property exchanges for decades. Give us a call today to discuss your 1031 options and get your exchange started – 877.373.1031.
Rochester Personal Property Exchanges
Many types of personal property can benefit from 1031 tax treatment as long as they are held for use in your trade or business, or for investment purposes. Here are some types of personal property that can be exchanged in a 1031 transaction:
- Business equipment
- Heavy duty general purpose trucks
- Construction equipment
- Ships and barges
Of course the standard time periods for a 1031 exchange apply to personal property as well. You have 45 days after selling your property to identify new replacement property, and 180 days total to complete your exchange (with both clocks running concurrently).
Like-Kind & Personal Property
The biggest issue you have to be cognizant of with personal property exchanges is the like-kind requirement. When it comes to real estate, like-kind is very broad in that most real estate qualifies as like-kind to other real estate. In the realm of personal property, this requirement is a lot stricter. To confirm what is and is not like-kind when it comes to personal property, you need to check the General Asset Class List as set forth by the Treasury Regulations.
Rochester Personal Property 1031 Exchange Services
If you’re convinced of the benefits of a 1031 exchange and want to get started right away – hold the phone! In addition to the time frames and regulations, there is a lot of paperwork involved in a 1031 exchange. Starting an exchange by yourself is not a good idea. It’s best to have a qualified intermediary to facilitate the exchange.
Contact our intermediaries today to get your exchange rolling. Our team will make sure all of your required paperwork is in order and that you abide by all the necessary regulations – 877.373.1031.